Case Note & Summary
The dispute arose from a demand notice issued by the Administration of Dadra and Nagar Haveli's Electricity Department, which claimed Rs.1,70,58,412 from the appellants for un-metered electricity consumption. The appellants deposited various sums until a fresh notice was issued demanding a balance of Rs.70,42,887, with a threat of disconnection of power supply. The appellants filed a writ petition in the High Court, which was dismissed but allowed them time to appeal to the Supreme Court. The Supreme Court granted special leave to consider the payment of the balance amount and directed the appellants to continue monthly deposits. The appellants later submitted that the entire amount had been paid, leading to the conclusion that the appeal had become moot. However, the court noted that the question of interest on the amount remained unresolved, permitting the respondents to compute and demand any interest due. The court disposed of the appeal without costs.
Headnote
A) Electricity Law - Demand Notice - Validity of Demand for Un-Metered Electricity - Electricity Act, 2003 - The appellants challenged a demand notice for un-metered electricity consumption and subsequently paid the demanded amount. The court held that while the principal amount was paid, the issue of interest remained to be resolved, allowing the respondents to compute and raise a fresh demand for interest (Paras Not mentioned).
Issue of Consideration
Whether the appellants were liable for the payment of interest on the electricity demand after the principal amount was paid.
Final Decision
The Supreme Court recorded that the entire demanded amount had been paid and directed that the power supply should not be disconnected. However, it allowed the respondents to compute any interest payable and raise a fresh demand for it.
Law Points
- Electricity demand
- Interest computation
- Writ petition dismissal
- Special leave petition
- Power supply disconnection



